Best strategy to finance down payment

[Jose Palma]

Hi BP, I'm still a newbie searching for my first deal. I've been spending a lot of time analyzing deals recently and am very interested in a few. I don't have any reservations about using hard money, but am curious about what you all think would be the best strategy to "finance" the down payment. Whether it's for a flip or a turnkey rental, there's still a good chunk of change that needs to be put down to get started. All ideas, recommendations are greatly appreciated!

[Aaron W.]

@Jose Palma  I agree with @Aj Parikh that HELOC if you have it and private money lenders like friends and family will be the cheapest money to borrow. With friends and family, you can set the terms with them and be creative with it. If you go with them, make sure you present it as an opportunity and not asking for money.

If you do have equity in your personal home, then you can also look at doing a cash out refinance. The interest rates are still low from a historical standpoint. Just know you will have to start making payments right away where a HELOC you borrow when you need it.

Best of luck!